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PVM Midday Report 15 October 2015

Published Thursday, October 15th, 2015

Headlines

  1. API reports biggest weekly jump in US crude oil stocks since early April
  2. Mexican oil minister to attend OPEC technical meeting but vows not to cut oil output
  3. ECB policymaker hints at further stimulus to boost flagging eurozone inflation
  4. German regulator orders the recall of 2.4 million VW cars

Oil                                                                                              

Fundamentals: The API has reported a considerable build in weekly US crude inventories of 9.4 million bbls against expectations of a 2.8 million bbl increase in what would be the largest weekly rise since early April. Moreover, it claimed that stocks at the Cushing delivery hub rose by 1.4 million bbls while gasoline and distillate stockpiles fell by 5 million bbls and 2.7 million bbls respectively. Meanwhile, Mexico’s oil minister has confirmed his attendance at the OPEC technical meeting scheduled for October 21 but insists that there will be no cut in oil production on its part.

Technicals: The market is a bit quiet and still stuck, but the supports are holding. RBOB remains the contract to watch for guidance. It is hemmed in by two c/ps at 130.39 and 133.71. Neither have been tested yet but moves confirmed by closes (m/c) beyond either extremity will give the clue as to the next leg. In the meantime support is holding and m/c below are needed for targets south. The support is at 46.11 WTI; 49.22 Dec’ Brent; 147.43 Heat; 130.39/00 RBOB; and 453.75. The key technical indicators are negative but the contracts continue to hold support. Watch RBOB for guidance.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.